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Tax Code

Dáil Éireann Debate, Tuesday - 17 April 2018

Tuesday, 17 April 2018

Ceisteanna (208, 249)

Thomas P. Broughan

Ceist:

208. Deputy Thomas P. Broughan asked the Minister for Finance if he will remove VAT and VRT from advanced driver assistance systems on new or older vehicles to incentivise the public to drive much safer vehicles and promote the Vision Zero policy of road safety; and if he will make a statement on the matter. [15744/18]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

249. Deputy Thomas P. Broughan asked the Minister for Finance his plans to remove VAT and VRT from advanced driver assistance systems on new or older vehicles to incentivise the public to drive much safer vehicles and promote the Vision Zero policy of road safety; and if he will make a statement on the matter. [15743/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 208 and 249 together.

I am advised by The Revenue Commissioners that the chargeable value for the calculation of Vehicle Registration Tax, the open market selling price (OMSP), is provided for in the Finance Act 1992, section 133. This section provides that the OMSP comprises the price, inclusive of all taxes, duties, enhancements or accessories, that a motor distributor might reasonably expect to fetch for a vehicle on the open market. Advanced driver assistance systems, whether as part of the basic vehicle specification or as an enhancement to the vehicle, form part of the OMSP for VRT purposes.

I am further advised by Revenue that the VAT rating of goods is subject to the requirements of EU VAT law, with which Irish VAT law must comply, and there is no provision in the Directive to allow for the removal of VAT from advanced driver assistance systems.

While all initiatives that promote road safety are welcomed I currently have no plans to propose or make changes to the VAT and VRT systems.

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